Comparative advantage at producing something if it can be produce it at lower cost than anyone else. Absolute advantage refers to the ability of a individual, organization and/or country to produce more goods or services than competitors. The main difference is a joint venturing partnership.
An exchange rate is the amount one currency is worth in another at a given time and affected by international exchange markets.
1.00 Euro Rates tableTop 10 Jun 17, 2014 18:16 UTC
|Euro||1.00 EUR||inv. 1.00 EUR|
|Chinese Yuan Renminbi||8.381159||0.119315|
|New Zealand Dollar||1.565751||0.638671|
U.S. firms find it easier to sell goods in foreign markets
U.S. firms find less competitive pressure to keep prices low
More foreign tourists can afford to visit the U.S.
U.S. capital markets become more attractive to foreign investors
Consumers face higher prices on foreign products/services
Higher prices on foreign products contribute to higher cost-of-living
U.S. consumers find traveling abroad more costly
Harder for U.S. firms and investors to expand into foreign markets
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